LONDON--Asia Resource Minerals PLC (ARMS.LN) Friday extended a
deal to sever ties with major shareholder Bakrie Group until March
25, but said the necessary funds are now in holding accounts.
The conclusion of the split has already been postponed several
times this year so that Bakrie Group, a heavily indebted
conglomerate controlled by Indonesia's Bakrie family, could raise
the money.
"All Bakrie Group funding required to complete the separation
transaction is now in holding accounts at the escrow bank," Asia
Resource Minerals--formerly called Bumi PLC--said in a statement.
"The company believes that everything is now in place to complete
the transaction but this cannot now occur today due to the cut-off
time for transferring funds and shares in Singapore."
Asia Resource Minerals was formed in 2011, when Bakrie Group
folded its coal assets into an investment firm created by U.K.
financier Nathaniel Rothschild. The venture was plagued by falling
coal prices, boardroom arguments, and a dispute over missing funds.
In October 2012, Bakrie Group proposed to break the company up.
In December 2013, Asia Resource Minerals shareholders backed a
deal in which Bakrie Group would sell its 24% stake in Asia
Resource Minerals to two companies controlled by Asia Resource
Minerals Chairman Samin Tan for $223 million. Bakrie Group was then
to buy Asia Resource Minerals' 29% stake in PT Bumi Resources for
$501 million.
Shares fell after the announcement Friday, closing down 5% in
London at 212 pence. They have lost 88% of their value since Bumi's
initial public offering.
Alex MacDonald and Ian Walker contributed to this article.
Write to Ed Ballard at ed.ballard@wsj.com
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